Federal Signal Corporation (FSS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.63% | 26.13% | 24.04% | 23.80% | 25.96% |
| Operating profit margin | 15.12% | 13.03% | 11.21% | 10.77% | 11.62% |
| Pretax margin | 14.18% | 11.78% | 10.52% | 9.69% | 11.02% |
| Net profit margin | 11.62% | 9.14% | 8.39% | 8.29% | 8.51% |
Federal Signal Corporation's profitability ratios show positive trends over the years. The gross profit margin has fluctuated between 23.80% and 28.63%, with an improving trend towards 26.13% in 2023 and reaching 28.63% in 2024. This indicates the company's ability to control production costs and generate profit from its core operations.
The operating profit margin has also shown improvement, increasing steadily from 10.77% in 2021 to 15.12% in 2024. This indicates the company's efficiency in managing operating expenses and generating profits before interest and taxes.
Similarly, the pretax margin has increased from 9.69% in 2021 to 14.18% in 2024, reflecting the company's ability to generate profits before accounting for taxes.
The net profit margin, which represents the bottom line profitability after all expenses are accounted for, has also shown significant improvement from 8.29% in 2021 to 11.62% in 2024. This indicates the company's ability to effectively manage its expenses and generate higher profits for its shareholders.
Overall, the improving trend in all profitability ratios indicates Federal Signal Corporation's successful efforts in optimizing its operations and maximizing profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.94% | 13.85% | 10.55% | 9.57% | 10.87% |
| Return on assets (ROA) | 12.25% | 9.71% | 7.90% | 7.36% | 7.96% |
| Return on total capital | 23.30% | 22.23% | 18.69% | 15.46% | 19.27% |
| Return on equity (ROE) | 18.24% | 15.71% | 13.99% | 12.83% | 13.70% |
Federal Signal Corporation's profitability ratios show a positive trend over the years.
- Operating return on assets (Operating ROA) improved from 10.87% in 2020 to 15.94% in 2024, indicating the company's ability to generate operating income from its assets consistently, with a peak in 2024.
- Return on assets (ROA) also increased from 7.96% in 2020 to 12.25% in 2024, showing that the company's overall profitability relative to its total assets has been improving steadily over the years.
- Return on total capital demonstrated a similar positive trajectory, rising from 19.27% in 2020 to 23.30% in 2024. This indicates that Federal Signal Corporation's efficiency in generating returns from both debt and equity capital has been increasing.
- Return on equity (ROE) experienced an upward trend as well, climbing from 13.70% in 2020 to 18.24% in 2024. This indicates that the company has been generating higher returns for its shareholders over the years.
Overall, Federal Signal Corporation has been effectively utilizing its assets and capital to enhance profitability and shareholder value, as evidenced by the improving profitability ratios across the board.